Feed change advised for modernity
Changes already made in animal feed standards have pleased producers in the industry, Photo: Le Toan

At last week’s Vietnam Business Forum in Hanoi, members of the European Chamber of Commerce in Vietnam (EuroCham) proposed changes in the regulatory framework for the regulation of new and innovative raw materials for feed production and to improve sustainability.

Regulations on animal feed ingredients have been a concern of livestock enterprises – mostly foreign-invested enterprises – for a long time. It is becoming more urgent as the costs of raw materials for animal feed production is soaring to new highs.

Some countries have already made decisions on cutting crude protein content in animal feed. Since 2021, crude protein in every stage of pig breeding in South Korea is classified and been reduced by about 1-3 per cent. By 2024, the crude protein content of poultry and ruminant feed will also be changed.

The foundation of the revision of the feed regulations lies in South Korea’s declaration of becoming a carbon-neutral country by 2050, so the country will reduce 710 million tonnes of greenhouse gas emissions by 2030, down by almost one-quarter compared to 2017. The emissions from the livestock industry include 4.4 million tonnes of intestinal methane fermentation and 4.9 million tonnes of nitrogen oxide in livestock manure.

The South Korean Ministry of Agriculture, Food and Rural Affairs predict that a 1 per cent reduction in crude protein in animal feed after its adjustment would reduce approximately 360,000 tonnes of nitrogen oxide produced by cattle manure, and ammonia emissions are expected to be reduced by up to 10 per cent.

Moreover, the cost of animal feed production is estimated to be reduced by $2.50-3.30 per tonne by reducing the protein content.

The change in animal feed standards has received positive feedback from the industry, and numerous feed producers in South Korea agreed that a slight adjustment of crude protein content in animal feed is necessary.

In Vietnam, EuroCham suggested building policies ensuring and updating feed registration and labelling requirements.

Amid the EuroCham proposal, some livestock companies and nutritional experts in Vietnam have mixed opinions.

Nguyen Xuan Duong, chairman of the Animal Husbandry Association of Vietnam, said that the reduction of crude protein content in animal feed was a possible option.

This is much higher than the standards in Circular No.04/2020/TT-BNNPTNT from 2020, which serves as Vietnam’s technical regulation for standards in animal feed and ingredients in aquaculture feed.

Hoa Binh province exports first batch of fresh sugarcane to US

The first batch of 20 tonnes of fresh sugarcane from Hoa Binh bound for the US was announced at a ceremony held in the northern mountainous province on March 19.

Speaking at the event, Vice Chairman of the provincial People’s Committee Dinh Con Su said the province will seek ways to boost sugarcane exports, contributing to the development of sugar industry in the locality.

The export batch was the result of over four months of negotiations between Tien Ngan company and a US partner. The company expects to ship between 300-500 tonnes of fresh sugarcane this year, according to its director Nguyen Le Diep.

Director of the provincial Department of Agriculture and Rural Development Nguyen Huy Nhuan said that sugarcane can bring high economic value and has huge potential for expanding exports. The department will create the best condition for local businesses to seek market in the time ahead.

The province first exported fresh sugarcane to Japan in 2020 with 5.7 tonnes and the volume rose to 300 tonnes in 2022, with orders from demanding markets such as the Republic of Korea, the UK and the EU.

VASEAN aims to promote cooperation in ASEAN countries

The Viet Nam - Asean Association for Economic Co-operation Development (VASEAN) would create conditions for firms in seeking business opportunities, through building transaction centres and promoting products in ASEAN countries.

Bui Tat Thang, VASEAN’s vice chairman made the statement at a gala dinner meeting with ASEAN ambassadors held in Ha Noi this week, aiming at increasing mutual understanding and cohesion, preparing for extensive cooperation in 2023.

He added that the VASEAN would also promote cultural exchange to contribute to promoting economic cooperation; develop annual economic reports (trade and investment) of ASEAN countries.

After 15 years of establishment, the association has gradually affirmed its position and historical mission, contributing to the development of economic cooperation and cultural exchange of ASEAN countries and countries in the Asia-Pacific region in general.

VASEAN has continuously grown and developed. A part of the development comes from the process of cooperation, exchange and mutual sharing of embassies in the region.

In 2022, the association organised a working delegation with a number of embassies to enhance understanding, exchange and create opportunities for member businesses to learn about policies and the investment environment of other countries, especially during the COVID-19 pandemic.

2023 marks the 15th anniversary of development and integration, VASEAN wishes to strengthen trade promotion, investment, cooperation and cultural exchange with other countries in the region.

2023 is the 28th year since Viet Nam officially joined ASEAN. Viet Nam has always determined to be an active, proactive and responsible member, contributing its best to the strong, peaceful and prosperous development of ASEAN.

The deep participation in ASEAN’s economic integration helps Viet Nam attract more investment and technical capital from outside, especially from multinational companies, and at the same time expand the market for goods and services.

In addition, the strategic partnership between Viet Nam and South Korea and India has also achieved many important achievements, contributing to promoting the fast and sustainable development of Viet Nam's economy.

Ministry carries out solutions to effectively exploit domestic market

Measures have been taken to effectively exploit the domestic market with a population of nearly 100 million to fulfil the goal of an increase of 8-9 per cent in retail sales of goods and services, according to the Ministry of Industry and Trade (MoIT).

Since the beginning of this year, the ministry has strived to enhance connectivity and ensured a balance between the supply and demand of essential goods, contributing to keeping inflation under 4.5 per cent.

The sales of goods, especially agricultural products in the harvest season, were facilitated, along with the establishment of a linkage between supply and demand in the online environment, based on new platforms.

The MoIT will continue to accelerate the amendment and completion of a number of legal documents on domestic market development.

It will also speed up the implementation of a strategy for developing domestic trade until 2030, with a vision to 2045, as well as related programmes such as a project on developing the domestic market in association with the campaign "Vietnamese people prioritise Vietnamese goods" in the 2021-25 period.

Domestic trade promotion activities will be integrated with consumer stimulus programmes.

The ministry will support enterprises, especially small and medium ones, production facilities of craft villages, farmer households and cooperatives in trade promotion activities; building and protecting brands for domestic wholesale and retail distribution chains; and popularising typical products of Viet Nam.

Priority will be given to the development of modern commercial and digital platforms, and e-commerce and non-cash payment methods encouraged.

The MoIT will focus on applying digital technology to trace goods' origin in commercial infrastructure systems such as supermarkets and markets, as well as developing new retail methods to meet the requirements of consumers.

It will also encourage the expansion of green distribution system and green consumption, sustainable development and circular economy in the field of commerce. The sustainable connection between production, distribution, and consumption will be boosted along with the presence of environmentally friendly products at commercial centres and supermarkets.

Under a draft project on restructuring the industry until 2030, the MoIT sets the goal of restructuring the domestic market towards fast and sustainable development. Accordingly, the models of sharing economy, night, tourism, green, circular and digital economy will be prioritised for development. The added value of domestic trade will increase by an average of 9-9.5 per cent per year.

Bamboo Airways finds a new investor

A representative of Bamboo Airways confirmed that the airline had found a new investor to replace the old shareholders, former Chairman Trinh Van Quyet and other related shareholders.

Bamboo Airways is in the negotiation phase with a new investor. This group is expected to provide financial support to the company and the old chairman Trinh Van Quyet.

Bamboo Airways has assisted in carrying out the procedures for transferring shares from old shareholders to new investors. The transfer is carried out under the supervision of State agencies in accordance with the provisions of law and approved by the competent authorities.

The new investor, in addition to paying the share purchase price, has also agreed to be responsible for the payment of principal and interest on previous loans used by the old shareholders.

At the same time, the new investor also supported former Chairman Trinh Van Quyet with a separate amount of money that will be paid into the trading account of Quyet blocked by the Investigation Police Agency.

The company representative also said that after the COVID-19 pandemic, major events related to senior personnel had made the company face many difficulties in paying debts to credit institutions.

Bamboo Airways has called for support from a number of large investors to help the company overcome the current crisis. For example, Him Lam Joint Stock Company has lent Bamboo Airways VND8 trillion. This real estate group was established in 1994 with the initial charter capital of VND300 million, in 2010 increased to VND6.5 trillion.

Bamboo Airways was established on May 31, 2017 with an initial charter capital of VND700 billion, 100 per cent owned by FLC Group. After that, the airline increased its charter capital to VND2.2 trillion, VND7 trillion and VND10.5 trillion and finally VND18.5 trillion in September 2021. FLC also gradually reduced its ownership to 21.7 per cent.

Middle East, North Africa lucrative markets, fruit, vegetable exporters told

The Middle East and Africa have high demand for fruits and vegetables, offering Vietnamese firms a great opportunity to boost exports, according to the Ministry of Industry and Trade.

Nguyen Minh Phuong, director of the ministry’s Asia-Africa market department, said the Middle East, which comprises 15 countries and has a population of around 400 million people, has a high per capita income.

They import large volumes of agricultural products, including fruits and vegetables, she said.

Africa too has huge demand for agricultural products, but because of the distances, Vietnamese firms only export to countries in the north of the continent, she said.

Viet Nam’s exports of fruits and vegetables to the Middle East and North Africa (MENA) have soared from US$255.1 million in 2019 to $380.3 million in 2021, with the main markets being Turkey, the UAE, Egypt, Saudi Arabia, Israel, Iraq, Qatar, Morocco, and Algeria, she said.

But the exports account for only 2.6 per cent of the region’s total imports in 2021, she said.

Of the exports to MENA, cashew is the largest item, rising from $167.8 million worth in 2019 to $260.8 million in 2021 and accounting for 50.2 per cent of its total imports, she said.

“Vietnamese cashew products are available in many supermarkets in the UAE, Turkey, Saudi Arabia, Israel, and Egypt, and companies should continue to promote exports to the region,” she said.

Viet Nam also exports coconut products (mature coconut, copra and coconut oil), lemon, almond, macadamia, banana, grapefruit, guava, mango, mangosteen, watermelon, lychee, rambutan, plum, carrot, and radish to the region.

But because of the distance, it is not easy to export fresh fruits, and so Phuong suggested exporting frozen fresh fruits instead.

She said there are challenges in exporting to Africa and the Middle East, including fierce competition from India, Iran, Turkey, Thailand, the Philippines, China, the US, European countries, and South Africa.

To be successful, Vietnamese firms should understand the regulations in each market, including food hygiene and safety and pesticide residue requirements, and labelling in local languages, she said.

Halal certification is required to export to the Middle East, home to a large Muslim population, while products exported to Israel must have Kosher certification, she said.

LuLu, the leading supermarket chain in the UAE, is present in Viet Nam and imports many products, and Vietnamese businesses should touch base with it to export their products to the Middle East, she said.

They should also join the ministry’s trade promotion programmes to promote their products in the region, she added.

Dang Phuc Nguyen, general secretary of the Viet Nam Fruit and Vegetables Association, said fruit and vegetable exports are expected to rise to $4 billion this year from $3.4 billion last year as many markets are allowing in Vietnamese fruits and China has reopened its borders.

Durian shipments alone fetched over $420 million last year after getting the green light to enter China through the official channel, and this year the figure is expected to top $1 billion, he said.

In the first two months of this year fruit and vegetable exports were worth $592 million, a 17.8 per cent increase year-on-year.

China remained the major market, accounting for 57.5 per cent of the exports. 

All options on the table as livestock firms take on losses

Livestock businesses in Vietnam are struggling with record low profits after a drop in both prices and demand.
Over the last few weeks, the price of live hogs in Vietnam has fallen, causing livestock groups to suffer losses. In the north, prices have fallen to lower than $2.15 per kg, a two-year low. In the central and southern regions, the price is around $2.20.

The cost of breeding pigs in household farmsteads is about $2.60 per kg, and around $2.15 for big husbandry companies that cover all farming stages from animal feed and seeding to slaughtering. Accordingly, farmers are suffering heavy losses, while big companies like C.P. Vietnam, Japfa Vietnam, CJ, Masan, and Dabaco cannot gain profits.

Towards the end of last year, many pig breeding enterprises reported losses or retreating profits over the same period. According to a February statement, local giant Dabaco saw a loss of more than $3.4 million in the fourth quarter of 2022, while it earned nearly $4.87 million in profit in the same period in 2021. The COVID-19 pandemic, the decline in live hog prices, and the fall in demand have greatly affected business.

Chilled meat giant Masan MeatLife reported a loss of more than $7.4 million in the last quarter of 2022, meaning a loss for the whole of the year of over $10 million. The company has not produced animal feed since the end of 2021, instead paying attention to meat branding.

Nguyen Cong Bac, director of Loc Phat BLLT Livestock JSC in the northern province of Son La, said that he sells 2,000-2,500 pigs every month and at current prices, the company loses as much as $65,000 per month. He said that he has never been in such a difficult situation before, despite working as a pig farmer for over 20 years.

Nguyen Duc Trong, vice chairman of the Vietnam Association of Farms and Agricultural Enterprises, recommended that farmers consider re-herding. 

Animal feed accounts for up to 70 per cent of input costs. When the selling price of hogs falls, farmers try to cut input costs. So, Trong suggested farmers should actively find domestic sources of animal feed to reduce costs.

According to the Ministry of Agriculture and Rural Development, in 2022, the output of live meat was about 7.05 million tonnes, including 474,300 tonnes of live beef, up 3.5 per cent on-year; 4.4 million tonnes of live hogs, up 5.9 per cent; and two million tonnes of poultry meat, up 4.5 per cent.

In addition, Vietnam spent about $1.5 billion importing meat, meat by-products, and related produce in 2022, up 9.1 per cent on-year.

Nguyen Xuan Duong, chairman of the Animal Husbandry Association of Vietnam, said that both domestic and imported food supplies increased, while the purchasing demand reported a small downtrend due to inflation. Increased consumption of chicken, seafood, and beef led to the sharp dip in the price of pigs.

At last week’s Vietnam Business Forum, the European Chamber of Commerce in Vietnam (EuroCham) highlighted to further utilise the EU-Vietnam Free Trade Agreement to help find new markets to overcome the current breeding woes.

Beverage leaders plead for excise tax postponement

Key industry players are calling for the delay of increased taxes on alcohol and sugary drinks to support business recovery and ensure they do not undermine economic growth.

The Vietnam Beer-Alcohol-Beverage Association met in the central city of Danang last week to discuss the Ministry of Finance’s (MoF) proposed tax increase on alcohol and sugary drinks. The association asked for a postponement of the excise tax for at least the next two years, as well as the removal of sugary drinks, barley drinks, and non-alcoholic beverages from consumption tax obligations.

Viet explained that the beverage industry has grown in production, but its performance had fluctuated greatly in the past five years.

Vo Tri Thanh, director of the Institute of Branding and Competition Strategy, said that taxes should not be changed during the current period to give more time to research, assess the social impact, consult businesses, and study international experience regarding the tax.

He suggested that the authorities look at a mixed tax, applying the tax calculation according to an overall percentage and absolute tax, from 2026, when Vietnam should move closer to being an upper middle-income economy.

Over the past 15 years, duty on the alcohol industry has been adjusted five times. The tax increased from 50 per cent in 2015 to 55 per cent in 2016, and then rose to 65 per cent in 2018. The taxable basis also shifted from the import price to the wholesale price.

Other industry players claimed that any change in tax policy could undermine the Vietnamese government’s efforts to improve the country’s business environment and competitiveness.

Nguyen Van Viet, chairman of the Vietnam Beer-Alcohol-Beverage Association chairman highlighted how the industry generates employment and adds an estimated $2.6 billion to the state budget each year, encouraging the growth of other industries. Companies in the industry are also setting the bar for corporate social responsibility and sustainable growth.

Multinational financial news site Business Insider predicted weakened consumer spending will impact the growth of beer sales in 2023. Moreover, some regulations, including the prevention and control of alcohol-related harm and a decree regulating strict fines for drink-driving introduced in 2020, are believed to have reduced alcohol consumption by 20-30 per cent.

CapitaLand negotiates to buy $1.5 billion of assets from Vinhomes

The Asian real estate giant CapitaLand Group is in talks to acquire assets worth roughly $1.5 billion from Vietnam's biggest listed property firm, Vinhomes JSC, sources familiar with the matter told Reuters.

Vinhomes is a part of Vingroup, the country's largest conglomerate, and is the biggest real estate developer in Vietnam with a capitalised value of $8 billion as of March 17.

The above-mentioned source said CapitaLand is considering buying part of Vinhomes' Ocean Park 3 project, a 294-hectare resort city-style development near the Vietnamese capital city of Hanoi, and another project in the northern city of Haiphong.

CapitaLand Group's CapitaLand Development (CLD) is now developing residential projects, including luxury condominiums, in four cities in Vietnam.

When contacted by Reuters, CLD’s representatives did not directly comment on any potential deal with Vinhomes, but said, "Vietnam is one of CLD's core markets. We constantly evaluate investment opportunities to grow our presence in the country."

CLD (Vietnam) oversees and grows CLD’s investment and development business in Vietnam, one of CLD’s core markets where it has built an extensive presence over 29 years. CLD's (Vietnam) portfolio comprises one retail mall, one Small Office, Home Office project, three integrated developments, and over 13,000 quality homes across 17 residential areas.

Vingroup declined to comment on any discussions with CapitaLand but said that as a listed company, it would disclose the information if any transactions happen.

The talks come as Vietnam's property sector is struggling with a cash crunch following measures from the government to tighten credit and restrict corporate loans to make the market more stable and healthy.

A deal of that size would mark one of the largest real estate transactions in Southeast Asia in the last few years.

CapitaLand Group, majority owned by Singaporean state investor Temasek Holdings, is operating in 40 countries in retail, office, residential, business park, and data centre development, among other businesses.

According to Vinhomes’ unaudited consolidated financial statements for the fourth quarter of 2022 that were released in January, its total consolidated net revenue reached $1.35 billion, representing an increase of 34 per cent compared to the same period last year thanks to the additional delivery of over 2,200 low-rise units at Vinhomes Ocean Park 2, the Empire.

The consolidated profit before tax was $543 million and consolidated profit after tax and minority interest was $386.9 million, representing on-year decreases of 10 per cent and 24 per cent respectively.

Ministries to devise measures for attracting int’l capital to PPP projects

The Ministry of Planning and Investment (MPI) has been assigned to coordinate with related ministries to devise and propose policies and measures for attracting international financial funds and capital sources to public - private partnership (PPP) projects in Vietnam.

This is among the tasks set by Deputy Prime Minister Tran Hong Ha with regard to PPP investment activities, according to the Government Office.

In particular, the MPI was asked to work with other ministries to review the enforcement of the 2020 law on PPP investment, as well as obstacles to the implementation of the Government’s Decree 35/2021/ND-CP, dated March 29, 2021, that guides the law enforcement.

They were ordered to propose revisions, supplements, and international capital attraction measures to the PM in the second quarter of 2023.

Meanwhile, Deputy PM Ha assigned the Finance Ministry to coordinate with others to review problems during the implementation the Government’s Decree 28/2021/ND-CP, dated March 26, 2021, that rules the mechanism for financial management of PPP investments; Decree 29/2018/ND-CP, dated March 5, 2018, on processes and procedures for establishing the right of all-people ownership; and Decree 69/2019/ND-CP, dated August 15, 2019, that regulates the use of public assets to pay to constructors under build - transfer (BT) contracts.

They were also told to propose amendments and supplements to the PM in the third quarter of this year.

Digitisation in agricultural product traceability needs joint efforts

Digitisation in agricultural product traceability requires the engagement and coordination of all parties, from State management agencies to enterprises, cooperatives and farmers, according to an official from the Ministry of Agriculture and Rural Development.

Nguyen Quoc Toan, Director of the ministry’s Centre for Digital Transformation and Agricultural Statistics, said at a recent forum in Hanoi to promote digitalisation to support traceability of agricultural and food products that traceability is one of the eight key issues in digital transformation of the agricultural sector.

According to him, Vietnam currently has around 19,000 cooperatives, 14,200 enterprises and 7,500 processing facilities in the agricultural sector, along with about 9,400 supermarkets and markets, which constitutes the Big Data part of the sector.

Therefore, traceability of agricultural products must be holistic and specific, he stressed.

State management in this issue aims to meet requirements of international integration, improve transparency and accountability for the sector, and increase farmers’ interests, he added.

Huynh Tan Dat, Deputy Director of the Plant Protection Department, said that the department has built a national database on planting area codes and export packing facilities.

Meanwhile, the Ministry of Agriculture and Rural Development has a product tracing system, which is connected with eight similar systems of eight cities and provinces, with the participation of 3,964 enterprises and 16,987 agricultural and food products.

Hanoi promotes public-private partnership to boost livestock production

Hanoi possesses all the necessary elements to promote public-private cooperation in developing the livestock industry.

Nguyen Xuan Dung, Chairman of the Animal Husbandry Association of Vietnam (AHAV), made the remarks on March 16 at a conference on public-private partnership (PPP) in animal husbandry.

Dung added Hanoi boasts abundant resources in terms of human capital, materials, knowledge, ambition, businesses, institutions, and educational establishments, which are potential players in such a partnership.

Data from the Hanoi Department of Agriculture and Rural Development suggested the total number of buffaloes in Hanoi had increased by 4.1% to 28,700 heads by February 2023, while the cow herd decreased by 0.1% to 128,400 heads. The pig herd had increased by 3.7% to 1.4 million heads, and the poultry herd had increased by 0.5% to 38.7 million heads, with 26.2 million chickens, up 0.6%.

According to the agency, Hanoi's livestock industry is striving to adopt large-scale, high-tech, and bio-safe livestock models, and is gradually moving towards livestock planning that includes slaughtering, pre-processing, and processing to develop food chains and provide safe food for the capital's residents. At present, the city has designated specialized agricultural areas and large-scale farms, with 162 key livestock communes.

To achieve this, the industry has developed 53 chains that encompass the entire process of producing and consuming livestock products. Among these chains, many have attracted the participation of enterprises, cooperatives, and farming households, while several protected trademarks, including Ba Vi hill chicken, Soc Son hill chicken, Son Tay Mia chicken, and Van Dinh duck, have also been established.

Through a strict quality control system at every stage, the industry has successfully produced safe and high-quality livestock products, while raising awareness among producers to ensure safety and accountability to consumers. This has led to a new direction in livestock development for Hanoi during the period of extensive economic integration.

However, the industry still faces many constraints, such as incomplete supply chains and predominantly small- to medium-scale linkages. In addition, commercial infrastructure, especially in suburban areas, has not been developed synchronously, while insufficient attention has been paid to planning concentrated breeding areas in some localities, and there are few high-tech breeding areas.

Nguyen Van Chu, Chairman of Organic Green Clean Food Chain, shared the difficulties and obstacles encountered in practical activities, citing the significant impact of consumer habits towards cold and frozen meat on product consumption. He also pointed out that government policies do not differentiate between chain and non-chain products, so priority policies are needed to promote the consumption of chain products in public systems such as schools and hospitals.

Nguyen Trong Long, director of the Hoang Long Livestock Cooperative, called for a policy to encourage the construction of multi-story houses to minimize the breeding area and to lower the criteria for handling the breeding environment, which is currently too high.

Hanoi promotes public awareness of consumer rights

It is critical that consumers take an active role in researching, analyzing, and improving their knowledge of products and businesses to avoid falling victim to deceptive goods and fraudulent businesses.

The Hanoi People's Committee has teamed up with the Ministry of Industry and Trade to raise public awareness about customers' rights through a month-long campaign called "Transparent Information - Safe Consumption".

The campaign aims to highlight the significance and value of information in safeguarding the rights of consumers against intricate and sophisticated fraudulent practices, particularly in the online environment.

Consumers must take an active role in seeking, analyzing, and improving their knowledge of products and businesses to avoid falling victim to deceptive merchandise and fraudulent businesses, according to local authorities.

Acting Director of Hanoi's Department of Industry and Trade Tran Thi Phuong Lan noted the city has taken proactive measures such as developing plans, organizing numerous programs and events, and intensifying inspections to safeguard the interests of consumers within the region.

Recently, the Hanoi Steering Committee 389 has issued a plan which outlines the policy tasks for combating smuggling, commercial fraud, and counterfeit goods in Hanoi in 2023. The plan emphasizes the need for timely and effective dissemination of information on policies related to preventing and combating these illegal activities in the city.

Special emphasis is placed on educating enterprises involved in the production, import, export, and trade of goods on the importance of complying with the law and preventing the sale of counterfeit goods.

The plan also calls for reporting on the inspection and handling of cases by relevant authorities to inform the public about the harmful impact of these illegal activities on the economy, culture, and public health. The information provided must also be honest, objective, constructive, and responsible. The ultimate goal is to raise awareness and build consensus among the people of Hanoi, thereby contributing to the success of the fight against smuggling, trade fraud, and counterfeit goods.

Green logistics remain a taxing endeavour

Vietnam’s logistics businesses are advancing on a green path connected with digital transformation, but are also in a highly energy-intensive and polluting industry, raising concerns about the long-term sustainability and financial viability of the sector, experts have said.

On the last day of February, five Vietnamese firms – Ratraco, Vietnam Airlines, T&Y SuperPort, the Vietnam Shippers’ Council, and the Vietnam Coffee Cocoa Association – joined the World Logistics Passport initiative, which aims to facilitate global trade access by reducing fees and providing support to overcome related barriers (see quotes).

The scheme, established by the United Arab Emirates, now accounts for 47 per cent of global trade with 121 partners, covering 48 countries and 15 major trade routes.

The WLP may go some way to facing head-on sustainability in this country’s logistics firms. According to the Vietnam Logistics Report 2022 from the Ministry of Industry and Trade, only 31 per cent of surveyed businesses use sustainable power in warehouse operations; 26.8 per cent of logistics enterprises lack a green strategy; and 35.2 per cent of enterprises lack environmental controls.

Being a key sector in the growth of international commerce and global supply chains, logistics has never seen such significant transformation. The government released Decision No.876/QD-TTg last year on action to restructure the green energy industry and cut carbon and methane emissions from the transportation system. Particular emphasis was placed on the transition to green energy.

Several green policies in the logistics chain are also being adopted, and certain businesses are developing innovative and more ecologically friendly transportation techniques.

Saigon Newport Corporation fulfils its environmental conservation goals by implementing fuel-saving techniques and using clean fuel that conforms to international standards. Currently, 80 per cent of freight transportation from Cai Mep-Thi Vai port and the surrounding region to Saigon Newport is conducted by barges rather than vehicles.

In the northern border ports and the Mekong Delta, the increased use of barges as opposed to vehicles has led to a decrease in carbon emissions. Along with the e-customs application, the implementation of e-port and e-office technologies decreases the time required for cargo trucks to access the port from six minutes to two minutes per container.

However, a few standouts do not alter the reality that Vietnam’s green logistics growth remains in its infancy. Setting higher standards incurs more expenses, and change will not happen overnight.

Bee Logistics has a plan to reduce paper use by 80 per cent using iCloud-stored software. Yet Dinh Huu Thanh, chairman of the company, said it would require “a pretty lengthy period of time” to do it.

Trinh Thi Thu Huong, deputy dean of the School of Economics and International Business at the Foreign Trade University, said Vietnam needs a forerunner for the initial stage of green logistics growth, while the majority of enterprises are still contemplating investing in a green logistics development plan.

“The process of building green logistics can only be carried out if the state espouses supportive laws and firms execute them intelligently,” she added. “Vietnam combines the top-down and bottom-up green logistics concepts, two of the most prevalent around the globe.”

HCMC promotes development of two key urban areas

The Management Boards for the Urban Development Areas of Thu Thiem and Northwest will be established to assist the Ho Chi Minh City People's Committee in managing investment and development activities in these two important areas.

Chairman of Ho Chi Minh City People's Committee Phan Van Mai has just signed a decision to establish the Thu Thiem Urban Development Area Management Board by rearranging the Thu Thiem Construction and Investment Consultancy Service Center under the Thu Thiem Investment & Construction Authority. The board is a public non-business unitunder the People's Committee with its headquarter in District 1.

The board has the function of helping the People's Committee of Ho Chi Minh City manage urban development investment in the Thu Thiem urban area, including managing and supervising the process of urban development investment according to planning and plans, ensuring the synchronous connection and management of the framework technical infrastructure system and directly manage projects using state budget capital assigned by the municipal People's Committee in addition to other tasks.

At the same time, the board is responsible for coordinating with relevant agencies to develop a five-year plan for the Thu Thiem urban development area.

Last but not least, the board must organize investment promotion activities and propose preferential policies and specific mechanisms for construction activities in this area.

It will be an investor of projects using state budget capital and supervise the implementation of projects to make them complete on schedule.

Chairman of the Ho Chi Minh City People's Committee Phan Van Mai has also signed a decision to establish the Northwest Urban Development Area Management Board by rearranging the Construction Investment Consulting and Service Center under the Investment and Construction .

This board is headquartered at No. 404 Provincial Road 8, Hamlet No. 2, Tan An Hoi Commune in Cu Chi District.

Source: VNA/SGT/VNS/VOV/Dtinews/SGGP/VGP/Hanoitimes